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Why Gold System Comes Back

By xuanling11 | Crypto Learning | 10 Aug 2022


The modern financial system hates the gold system, which makes gold a fiat currency. Because they claimed the gold system created too many unnecessary financial crises. But the real problem is the corrupted system was designed to abandon the gold standard. 

 

The Newton's System

 

 

Many people may not be familiar with the 17th-century of living style at all. Back in the 17th century, ideology collided between theology and science. 

 

Theology told the earth is the center of the universe, but science told the other way. 

 

In 1717, Britain moved from the silver standard to the gold standard with the help of Newton's new minting method of precisely coin-making technology. 

 

Silver Standard

Silver is more abundant than gold. Therefore, silver is a perfect candidate for fiat currency in the ancient world because it is lighter weight to carry and much more available globally. But similar to gold, there is a limitation in the supply. Because of the supply restriction, the government wants more control of the currency, causing its economy to inflate and deflate. It prohibits nations from creating credits out of thin air. Therefore, the financial system has its integrity.

 

Gold Standard

Like silver, the gold standard has its system integrity to prevent nations from inflating its economy. But the addition to its integrity, gold cannot be counterfeit like silver. It makes gold a perfect fiat system with complete integrity.

 

A trust system

The current fiat system claims it is a trust-based system. But to be able to demand trust, the system does not offer its integrity. Trust works from both sides. If there is no integrity in the design, users will lose their faith in the system to choose another. However, when you only have one option, you have no option but to stick with one choice.

 

Current Fiat System

The current fiat system's danger is trying to remove the deflation. It has worked well in the last 50 years or so. There is only an inflation rate that accelerates or decelerates. Only the problem with this system is you are creating a winner that can dominate the entire system until it fails to wipe out the whole system and trigger a reset.

 

Unlike precious metal standards, you can choose between self-governing integrity to punish the government's negligence; government is unstoppable in the modern fiat system. 

 

Cryptocurrency System

Cryptocurrency is to create a new integrity system to build a new trust system for all. It is a peer-to-peer system to make the system in check while people will use it if it can prove its integrity.

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Disclosure: The article was written by a delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters. You should not believe any words this author wrote or you may experience similar symptoms or even possibly become a nut job.

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